China's forex reserves hit US$1 trillion
7 November 2006
China's foreign exchange reserves have hit US$1 trillion, state media reported. Economists and analysts had been expecting the announcement for some time. The country's reserves hit US$987.9 billion at the end of September and have been growing at an average rate of US$18.8 billion per month this year. The figure is one more indicator of China's meteoric rise in the world economy. Foreign exchange reserves stood at US$165.5 billion at the end of 2000. Now China accounts for almost 20% of the world's foreign exchange reserves, China Daily reported. "The problems come when they rise at a very fast rate. It's kind of like shooting cocaine into the veins of the economy, it's a stimulant," said Stephen Green, senior economist at Standard Chartered. According to official statistics, China's economy grew by 10.7% in the first three quarters.